XRP At Risk Of A Drop To $0.80? Analyst Makes The Case

Overview

Recent analysis from a cryptocurrency expert highlights potential bearish trends for XRP, suggesting a risk of a decline toward the $0.80 mark. The analysis is based on various on-chain indicators that reflect decreasing interest and selling pressure among significant market participants.

XRP’s On-Chain Indicators Signal Bearish Trends

In a recent discussion on X, analyst Ali Martinez outlined several concerning developments in XRP’s on-chain data. The first indicator of concern is the significant drop in network activity. Martinez pointed out that the Active Addresses metric, which measures the number of addresses engaged in transaction activities daily, has seen a noticeable decline. According to the analyst, daily active addresses have decreased to approximately 38,500. This drop indicates a waning interest in XRP, as fewer participants are engaging in transactions on the blockchain.

Another critical factor in the analysis is the behavior of whale investors, who hold substantial amounts of XRP. Recent data suggests that these large holders have sold approximately 40 million tokens, indicating a shift in their confidence regarding the asset. Given the influence these whales have on market dynamics, their selling activity could contribute to a bearish sentiment surrounding XRP.

Martinez also presented insights from the UTXO Realized Price Distribution (URPD) chart. This indicator reveals the price levels at which different portions of XRP’s supply were last purchased. The chart indicates that a significant amount of XRP supply has a cost basis around the $1.77 level, which is close to the current trading price. This situation raises the possibility that if XRP revisits this price point, investors who purchased at this level might react in a way that could further influence market dynamics. In a bullish market, such reactions typically manifest as buying pressure. However, given the prevailing market sentiment, the analyst expressed skepticism about whether this support level would hold.

Martinez cautioned that if the selling pressure persists, XRP could breach the $1.77 support level. A breakdown below this threshold could lead to a decline toward the next major support zone, identified near the $0.80 mark. This zone represents the largest demand area beyond the $1.77 level, highlighting its potential significance in future price movements.

From author

The analysis provided by Martinez underscores the importance of on-chain metrics in assessing cryptocurrency trends. The decline in active addresses and the selling behavior of whales reflect a broader sentiment that could impact XRP’s future performance. As traders and investors closely monitor these indicators, the potential for a significant price movement appears increasingly plausible.

Impact on the crypto market

• A decrease in active addresses suggests reduced interest in XRP, which could affect overall trading volume.
• Selling activity from whales may indicate a lack of confidence among major investors, potentially leading to further price declines.
• The UTXO Realized Price Distribution analysis highlights critical support levels that could influence trader behavior.
• A breach of the $1.77 support level could trigger additional selling, affecting XRP’s position in the market.
• The sentiment around XRP may reflect broader trends within the cryptocurrency sector, impacting investor confidence across various digital assets.